Japan's stock market made a rapid rebound Tuesday morning as investors wait for Prime Minister Shinzo Abe's announcement for a snap election, a report from Reuters revealed.

"The Japanese market had risen sharply so yesterday's shock caused volatility," Isa Kubo, equity strategist at Nissay Asset Management, said. "The market's focus now is whether Abe can continue to draw support from voters, and what kind of measure she will announce."

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Meanwhile, Sony made an astonishing bounce after its stock price soared 5.8 percent to 2,464.5 yen. This was Sony's highest since April 2011. The gain came after the company announced that its plans to increase revenue by up to US$11 bn through its movie arm in the next three years.

Meanwhile, the morning session in the Nikkei benchmark ended with 1.7 percent gain to reach 17,258.97. Nikkei went down 3.0 percent to 16,973.80 on Monday, its lowest since November 10, after it was announced that Japan is headed to recession.

The Bank of Japan purchased 38 billion yen worth of exchange-traded funds (ETFs) and another 1.2 billion yen of Japanese real estate investment trusts (J-REITs) as a means of boosting the nation's economic stimulus package.

Prime Minister Abe is slated to announce his plans to postpone the implementation of the 10 percent tax hike, as well as call for a snap election in the lower house. The poll is expected to take place December 14.

Economists and analysts were surprised after the government announced that Japan has slipped into recession in the third quarter.

It is believed that the contraction of the economy is triggered worries over the impending national sales tax hike, which took a hit on consumer spending. But there were also those who saw the silver lining.

Tomo Kinoshita, chief Japan economist at Nomura Securities wrote in a report that consumer spending gradually bounced back in August and September this year.

He also explained that delaying the consumption tax increase and a weakened currency could also affect the economy in a positive manner.

Tagsnikkei, Japan stock market, snap election, sony, Japan Economy